Taking out bad credit cash advance is very useful if handled properly. However, it can be expensive and can potentially lead you to debt if you are not careful. Knowing the good and the bad side of bad credit cash advance will help you make wiser decisions in using this service.
Managing Bad Credit Cash Advance
Cash advances are transactions that pose high risk for the lender. This is why it comes with fees, usually 1-4% of the advance. Bad credit cash advance has higher interest rates as opposed to regular purchases.
By definition, cash advance is taking out money in advance on the paycheck. Given that the payments are made on time there are little fees that you have to pay for. There are instances when cash advances can be very handy. This is true especially if you have unexpected bills to pay or expenses to take care of.
Difference between Ordinary and Bad Credit Cash Advance
There is not much difference between the two except that lenders who offer advance for bad credit do not check the applicant’s financial history. Applying for bad credit cash advance automatically means you do not have good score so the lender already knows about your financial situation.
There are no legal limitations when you borrow money through this method. You do not have to justify why you need the money and where you will spend it. However, the company or lender will ask for minimal requirements so that the company grants your loan.
One of these requirements is that you have to be at least eighteen years of age by the time of the application. Also, you have to be a citizen of the country you are applying the loan from. So, you have to be an American citizen. You also need to show proof that you are a stable employee with $1,000 minimum income per month. Finally, you will need a checking account where the money will be deposited should the loan be approved.
How Much Can You Borrow with Bad Credit Advance?
The amount varies from one loan to another. However, the amount ranges from $200 to $1,000, depending on your income. If you have higher income, you are allowed to borrow more since you have the better chances of paying for it.
As far as the fees for cash advance for bad credit go, it depends on your income level. This is why it is important that before you sign for bad credit advance, you have to make sure you know the terms and conditions.
The average fees for bad credit cash advance for every $100 is around $10 to $30. However, you have to set your expectations. Since it is a bad credit cash advance, you should expect to pay in a higher range.
Finally, it is important to remember that a bad credit cash advance is usually due in 14 days. You have to prepare your payment before the next paycheck to avoid paying for more charges and fees.